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<p>[QUOTE=&quot;bekiz, post: 1439052, member: 36546&quot;]medoraman, no one trying to create a paradigms - too difficult and requires consent of all the parties <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" />. You are right that it takes some knowledge about where to invest and how&nbsp; - this is what people can learn from smart investors while going to school, and they actually do it . But luck comes in timing of those investments. And these timing makes it more of a luck. (Though I believe that Buffet&#039;s last years have nothing to do with luck - he was just there with money bag and pushed for the deals he wanted)</p><p><br /></p><p><br /></p><p>As of diversification you are right, but as of percentage ... like Munger, Buffet&#039;s pal says, 3 stocks are more than enough in order to diversify. PM holds 8%&nbsp; of my portfolio and I tend to increase it steadily but not at once. </p><p><br /></p><p>Coin flip analogy was used in order to simplify as much as possible. For sure real world is much more complex and there are too many factors that affect each other and may be what I attribute to luck is just effect of something I don&#039;t know yet.[/QUOTE]</p><p><br /></p>

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